Construction Loans

Home Construction Loans Perth.

Are you looking for residential construction loan rates? At Build Loans, we can help you. As leading construction loan brokers in Perth and throughout WA, our dedicated team of experts can assist with all your construction finance needs. For the best construction loan rates, get in touch with our experienced team today

Finance Qualification

This is generally completed by a Sales Rep, and not a finance broker. They will get you to complete a basic qualification sheet (which is standard across all the building companies), sign a credit check authority, verify ID and collect a recent payslip. They will generally then pass this information onto a mortgage broker to give an initial qualification. By speaking to us directly first, we cut out the double handling and make sure we collect the correct information from you the first time.

Finance Interview

We will provide you with a list of requirements prior to the meeting. Here you will run through the proposed deal and all the facts and figures that are involved. You will sign all the relevant paperwork to get your application underway and the broker will collect all the supporting documents required. Hopefully by the end of the meeting the broker will be in a position to lodge an application for pre-approval.

Pre-Approval

Your broker or their support staff will advise you when your deal is pre-approved. This is not a formal offer of finance. This is an indication from the bank that they are willing to lend money based on a list of conditions being met. Your broker and their staff will start the process of meeting these conditions for you. They may request additional documents from yourself so be prepared!

Sign Offer and Acceptance on Land Preliminary Agreement with Builder

Once your pre approval is in place, you will be in a position to put an offer in on your block of land.
This will require you to sign contracts with the land agent and pay them a deposit (which contributes to your purchase) This offer should be made subject to finance. You will also sign an agreement with the builder to produce a contract. You will also pay a deposit
to the builder which is generally
non-refundable. Your land contract will have a finance due date you should be aware of.

Valuation

One of the main conditions to be met as part of the finance process is the bank will want to conduct a valuation on the property. They will require copies of the offer and acceptance on the land and a copy of signed builder contracts and diagrams. These may take several weeks for the builder to produce. A valuation can take a week to turn around.

Formal Approval

Once all bank conditions are met you will receive a formal offer of finance from the bank. This means you have met your finance obligation in your offer and acceptance. The bank will generate mortgage documents for you to sign and return to the bank. When these documents are signed and returned, the finance application process has been completed. We now move onto settlement. You generally have 21 days to affect this (subject to titles being issued).

Settlement

Your settlement agent will contact you with instructions on what is required from you to affect settlement. Generally they will request funds to complete to be deposited into a trust account. Once settlement has occurred you will officially own the land and repayments will commence (interest only).

Construction & Progress Claims

Construction happens in 4 or 5 milestones over a number of months. Stages include milestones such as slab down, brick work, lock up etc. Each time one of these stages occur, the builder will issue an invoice you. You need to pass these invoices onto the bank or broker so they can make a payment out of your loan funds on your behalf.

Key Hand Over

Once the final payment is requested the bank will request a copy of a home insurance policy. If the builder is happy that all payments have been made you can take possession of your new home. Your payments will generally revert to Principal and Interest.

Perth’s Leading Home Construction Loans

If you’re looking for new construction loans in Perth and throughout WA, let our team of experts help you. With extensive experience in construction lending, you can rest assured that you’re in safe hands. We can take you through the house construction loan process to help you find the best residential construction loans, making your life stress-free and easy.